Ally
A controversial new rule confirmed by the Department for Work and Pensions (DWP) will introduce significant changes to Universal Credit payments for young disabled claimants.
From September 2025, those aged 16 to 21 could lose the Limited Capability for Work and Work-Related Activity (LCWRA) component, resulting in weekly income deductions of up to £100.
The LCWRA component currently provides £390.06 per month, roughly £90 per week, to young people with serious health conditions that prevent them from working.
Under the new regulation, the government aims to redirect this support to incentivise workforce participation among youth, particularly those classified as NEET—Not in Education, Employment, or Training.
What Is Changing Under the New Universal Credit Rule?
The planned reform proposes the removal of the LCWRA component for young claimants under the age of 22, even if they are medically assessed as unable to work.
The proposal is part of a larger welfare reform strategy targeting reduced economic inactivity among the UK’s youth population.
While the DWP argues that the changes are intended to improve employment outcomes, disability advocacy groups warn that this policy risks increasing poverty and hardship among vulnerable individuals.
Who Will Be Affected?
Those most affected by the changes include:
- Disabled young adults aged 16–21
- Students aged 19+ in non-advanced education
- Part-time workers with health restrictions
- Families of disabled dependents transitioning to adult welfare
Currently, full-time students with disabilities are eligible for Universal Credit if they receive the LCWRA component.
Removing this support will eliminate their eligibility, leaving many without financial assistance for housing, transport, or education-related expenses.
Financial Impact of the Reform
The table below outlines the estimated weekly financial loss for different categories of affected claimants:
| Claimant Profile | Current Weekly Payment | Proposed Weekly Payment | Estimated Loss |
|---|---|---|---|
| Disabled youth (16–21) | £170 | £73 | £97 |
| Disabled student (age 19+) | £102.25 | £73 | £29.25 |
The £97 per week reduction represents a 57% drop in financial support for many young claimants, significantly impacting their ability to afford rent, food, transport, and healthcare.
Wider Consequences for Youth and Families
This reform risks undoing the progress made in promoting independence for young disabled people.
Many rely on the LCWRA payment as a temporary lifeline while completing education, undergoing treatment, or pursuing flexible employment.
Without this support:
- Students may drop out due to unaffordable living costs
- Part-time workers may exit the workforce due to financial instability
- Families may be forced to provide additional care or financial support
- Young adults may lose the opportunity for independent living
These outcomes contradict the policy’s stated goal of encouraging economic participation and may instead increase dependency on local authorities, carers, and charitable support systems.
Concerns Raised by Advocacy Groups
Disability rights groups including Disability Rights UK and others have strongly condemned the proposal, raising several concerns:
- Failure to distinguish medical incapacity from work avoidance
- No transitional support for families already experiencing benefit losses when dependents turn 19
- Risk of worsening poverty, isolation, and health outcomes for young disabled individuals
Public petitions and letters to MPs are gathering momentum as campaigners demand a full review and consultation before implementation.
Summary of Key Points
- The LCWRA component provides nearly £90 per week to disabled youth
- Up to 110,000 young claimants could lose this support from September 2025
- The proposed deduction could total up to £100 weekly per claimant
- Students, part-time workers, and families are most at risk
- The policy may increase poverty, unemployment, and educational dropouts
The DWP’s planned Universal Credit reform introduces a major cut to disability support for young people in the UK.
While aiming to reduce economic inactivity, the proposal risks deepening poverty, disrupting education, and undermining the independence of young disabled individuals.
Without further review and stakeholder engagement, this policy could cause long-term harm to thousands already facing serious barriers.
FAQs
What is the new Universal Credit rule for young claimants?
The DWP plans to remove the LCWRA component for claimants aged 16–21, potentially reducing weekly payments by up to £100.
Will students with disabilities be affected by the changes?
Yes. Many students qualify for Universal Credit only if they receive LCWRA. Without it, they may lose all eligibility.
When will the new rule take effect?
The changes are scheduled to begin in September 2025, subject to final review and implementation processes.